The light is controlled by the relay.  It can signal two things.  Normally it 
comes on and then extinguishes after the relay thinks the pre-glow plugs have 
gotten hot enough (the relay maintains power to the plugs until it reaches the 
safety time-out).  The relay also use the light to signal the operator when the 
system requires service, which is what it is telling you now by not coming on 
when the relay energizes the plugs.

You could measure the resistance of the plugs (normally 0.7 ohms) or measure 
current flow to the plugs to test them, or just replace them all and see if 
that clears the problem.  Work!  If you have money to burn, replace the relay, 
but that is the second least likely component to fail (the least likely failure 
is the dash light).
-- 
Max Dillon
Charleston SC
'87 300TD
'95 E300
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